Vanguard terminates global multi-factor active ETF
Vanguard has announced the closure of its Vanguard Global Multi-Factor Active exchange traded fund (ETF), effective after the close of trading on 22 June 2022.
The announcement followed a lacklustre Easter period for the ETF industry with overall investor caution causing trading values to plummet to levels not seen in the last 11 months, representing a fall of 35% ($7.5 billion in total), according to BetaShares. Out of the first four months of the year, three of them had seen negative flows.
In an announcement to the Australian Securities Exchange (ASX), Vanguard said the decision to terminate the fund was based on the fund’s low asset growth since inception, client and market feedback and modest anticipated future client demand.
“Vanguard has decided to provide investors with 18 trading days’ notice of its intention to terminate the fund,” it said.
The announcement said it was expected investors in the fund would receive a special distribution in respect of their units in the fund on or about 10 June, 2022 and a final distribution in respect of their units in the fund following the termination on or about 13 July, 2022.
AUTHOR
Liam Cormican
Recommended for you
VanEck is expanding its fixed income range with a new ETF this week to complement its existing subordinated debt strategy which has received $1 billion in inflows this year.
Specialist global equities manager Nanuk has celebrated 10 years of its flagship New World Fund and is actively considering its next possible vehicle.
Australian equities manager Datt Capital has built a retail-friendly version of its small-cap strategy for advisers, previously only available for wholesale investors.
The dominance of passive funds is having a knock-on effect on Australia’s M&A environment by creating a less responsive shareholder base, according to law firm Minter Ellison.
